Jones v. Coon, 45406.
| Citation | 295 N.W. 162,229 Iowa 756 |
| Decision Date | 10 December 1940 |
| Docket Number | No. 45406.,45406. |
| Parties | JONES et al. v. COON et al. |
| Court | United States State Supreme Court of Iowa |
JONES et al.
v.
COON et al.
No. 45406.
Supreme Court of Iowa.
Dec. 10, 1940.
Appeal from District Court, Polk County; John J. Halloran, Judge.
Creditors' bill in equity to subject to a judgment the interest of debtor in a testamentary trust. Opinion states the facts. From decree for defendants, plaintiffs appeal.
Affirmed.
[295 N.W. 163]
Stipp, Perry, Bannister & Starzinger and J. G. Myerly, all of Des Moines, for appellants.
Holliday & Myers, I. H. Tomlinson, and Gamble, Read, Howland & Rosenfield, all of Des Moines, for appellees.
OLIVER, Justice.
In 1929, a judgment was secured against Cora L. Coon. In 1934, William F. Cronk, father of Cora L. Coon, made a will containing a testamentary trust in which Cora L. Coon was a beneficiary. William F. Cronk died in 1938, the probate of his estate has been closed, and Bankers Trust Company is acting as trustee of said trust. Plaintiffs-appellants, as alleged owners of the judgment against Cora L. Coon, instituted this action in equity against said judgment-debtor and Bankers Trust Company, trustee, to subject to said judgment the interest of Cora L. Coon in said trust. The trial court denied the relief prayed and dismissed the petition and plaintiffs have appealed.
The will of William F. Cronk, in part, provides:
“Third: I give, and devise and bequeath all the rest and residue of my estate, real, personal and mixed, * * * to the Bankers Trust Co. of Des Moines, Iowa * * * as trustee, hereunder in trust, upon the following terms, trust and conditions.”
(1) Gives the trustee general discretionary power and authority to handle, sell, invest and reinvest the trust estate.
(2) Provides for a trust period of 15 years which may be terminated after 10 years upon request of the four children and may be extended up to 20 years “in the manner hereinafter provided.”
(3) Provides that the income and principal of the trust estate shall be distributed as follows: “The trustee shall divide the same into four equal shares, but said shares may be of undivided interests.”
“c. One share for my daughter Cora L. Coon, and to her children, subject to the limitations hereinafter provided.”
a, b and e, refer to shares for decedent's other three living children, Nellie May Adams, Mary Amanda Lewis, and Anson M. Cronk.
(4 and 5) Provide that the lineal descendants of any child dying prior to the termination of the trust shall take in lieu of said child. If no lineal descendants survive, such share shall be divided among the other shares.
“(6) Upon the termination of said trust period as heretofore designated, the said trustee shall convey, transfer and assign one of such shares to each of my said children, or, in the case of the death of any one of my said children, then to his or her lineal descendants, per stirpes and not per capita, and said trust shall thereupon be terminated. It is particularly understood, however, that it is my intention that the trustee need not sell any of the property held by it as a part of said trust but may distribute the same as above provided and such distribution may be made of undivided interests.”
(7 and 8) Provide for the compensation of the trustee and method of computing net income.
(9) The application of net income shall be as follows:
a. $25 per year for 10 years to a church.
b. Requires trustee to set up and maintain an emergency fund of $1,000 out of funds on hand or income, for use “for any purpose which it deems for the best interests of the said estate.”
“c. During the trust period herein specified the trustee shall pay the residue and remainder of the net income in equal parts, to, and for the benefit of the surviving children, or in case of the decease of any child to his or her living lineal descendants per stirpes and not per capita. Such payments shall be made quarterly on January 1, April 1...
To continue reading
Request your trial